Plastics Capital (AIM: PLA), the niche plastics products group, announces that it has successfully converted a major design project in its plastic bearings division.
The conversion of the design project and the tooling order now received represents a major commitment from a tier one automotive manufacturer for the production of tooling which will lead to the supply of lower steering column bearings over a 7 to 10 year period. High volume production is expected to commence in the first half of the next financial year. Sales are expected to reach more than £0.5m on an annualised basis and lifetime sales for the project are expected to be in excess of £4.0m.
Commenting, Faisal Rahmatallah, Executive Chairman, said:
"This major project win is indicative of what we can achieve in the bearings division with a number of large opportunities that are currently with our design engineering team. It is particularly significant as conversion of these major projects will drive significant revenue and profit growth over the long term in this division. We anticipate that other major projects of similar scale will convert in this division during the next 12 months.”